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Sunday, October 17, 2021

Nifty may cross 20,000 and Sensex 66,600 in next one year: ICICI Direct

NSE Nifty 50 can reach the level of 20,000 mark in the next one year due to pro-growth policies of the government and increase in corporate earnings. Whereas S&P BSE Sensex can go beyond 66,600 points. Brokerage firm ICICI Direct has said these things in a note. The brokerage firm believes that a variety of fundamental factors will propel the market further.

Let us tell you that this year the Sensex and Nifty have gained about 25 percent. It looks like Dalal Street has relieved itself of all worries. Whether it is a case of second wave of corona or there is a possibility of third wave coming. Nifty is currently trading near its all-time high and is expected to cross 18,000 level for the first time soon. At the same time, the Sensex has also reached close to 60,000.

What has been the reason for the increase so far?

Analysts at ICICI Direct believe that the current rally in Sensex and Nifty is supported by various aspects. The most prominent reason has been that equity has been recognized among the people as an asset class giving returns above the inflation rate. So that investment in the market has increased. “Apart from this, accelerated pace of digitization, signs of recovery in the economy and growth in corporate earnings were the main drivers,” the brokerage firm further said.

Reliance shares at record high, market cap exceeds Rs 17.40 lakh crore

ICICI Direct has opened a record number of demat accounts in the last one-and-a-half years. At the same time, investment through mutual funds has also increased. These are contributing to the better performance of the market. The brokerage said that with the advent of new technology, the penetration of equities has increased, leading to more and more retail investors joining the rally.

For what reasons will the market continue to rise in the future?

According to the brokerage firm, the market will remain bullish in the next one year due to the following reasons.

Pro-growth policies of the government

This includes policies like the PLI scheme launched for various sectors and announcement of relief measures for the telecom sector.

asset monetization

The government is working on permission to raise Rs 6 lakh crore till asset monetization by 2025.

fast pace of vaccination

With the increase in the pace of vaccination, the economic recovery will also be faster.

real estate sector

Recently, the real estate sector has seen a boom again. This is a good sign for the stock market.

Arrival of Startups in Dalal Street

After the spectacular listing of Zomato, in the next few years, many more great startups are preparing to enter the market through their IPO.

corporate corporate earnings

The brokerage firm says that corporate earnings may see double-digit growth between FY 2021 and 2023.

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Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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